Company Income Tax Rates

The income tax rate for both public and private companies is 30%.

  • The tax rate for a Public unit trust is also 30%.
Budget Update 2014
  • A Budget 2014 measure announced on 13 May 2014 confirms the reduction of the company tax rate by 1.5% (to 28.5%) from 1 July 2015.  See Budget papers – also note the consequent changes to the R&D Offset rates.
  • Also confirmed is the introduction of an Exploration Development Incentive in the form of a refundable tax offset available to Australian resident shareholders of greenfields mineral exploration companies. Previously released Coalition Policy indicates that only companies with a nil taxable income will qualify for the scheme which is to commence with effect from 1 July 2014. See Budget papers and Coalition policy.

For Fringe Benefits Tax rates – see  FBT

2013 Policy Developments

  • Coalition (in government since Sept 2013) pre-election policy is for a 1.5% company tax reduction to apply from 1 July 2015.
  • However, companies earning more than $5 million in taxable income will have a levy of 1.5% imposed to support the funding of the Coalition’s proposed Paid Parental Leave Scheme.  It is proposed that franking credits will not be generated from the levy.
  • More cut
  • Information- Paid Parental Leave
  • See also: “Business Taxation” – Moore Stephens 17 Dec 2013

Other entities tax rates:

  • Life Insurance companies – ordinary: 30%
  • Complying superannuation funds: 15%
  •  Non-profit bodies are exempt from tax on their mutual income. Non-exempt bodies are taxable on their non-mutual net income at the following rates:

Non-mutual Income Tax
 First $416 of taxable income  Nil
 $417 to $915  55%
 $916 and above  30%


Company tax loss carry-back scheme..

Legislative amendments to remove the carry-back availability from 2013-14 are included with the Mining Tax repeal measures passed by parliament in September 2014. See MRRT Repeal Measures Bill.

The ATO has provided for a “no-penalty” administrative treatment for companies which may have claimed for 2013-14 in accordance with the pre-existing law. Their tax assessments will be adjusted by the Tax Office to reflect the repeal with effect from 1 July 2014 or for late balancing companies from their 2012-13 year. See more information here.

Large Companies – revised timing of tax instalments

From 1 January 2014 corporate tax entities are required to make PAYG income tax instalments monthly rather than quarterly if they are over the specified turnover thresholds. These changes were foreshadowed in the Treasurer’s 2012 MYEFO.

  • Companies with turnover of $1 billion or more
    will remit their PAYG company tax instalments monthly from 1 January 2014.
  • Companies with turnover of $100 million
    will commence monthly payments  on 1 January 2015.
  • Companies with turnover of $20 million or more
    will commence monthly payments  on 1 January 2016.

These proposals will also impact all other entities including super funds, trusts and individuals:

  • Entities with turnover of $1 billion or more
    will commence monthly payments  on 1 January 2016.
  • Entities with turnover of $20 million or more
    will commence monthly payments  on 1 January 2017.

For further information about these measures see  Monthly PAYG instalments. and Monthly PAYG instalments – When will you become a monthly payer?

See also

Further information

Free ChecklistCompany Tax Return checklists – CPA Australia

doc-word Company checklist © ICAA and Thomson Reuters


This page was last modified on 3 October 2014